Thursday, July 17, 2014

Option Open Interest for 17-07-2014

Inference
The index opened weak, but went up above the dotted line within the first few minutes, and stayed in a narrow range with positive bias. The index closed just positive at 7640.45, a gain of 16.05 points. The broader market was also strong, with 1034 advances to 501 declines. Broader range for the series is at 7400-7800.
  • Call option 7700-7800 added 12.16 lacs huge amount of OI with short covering seen at 7600 and below strike prices.
  • Put option 7700-7300 added 24.49 lacs huge amount of OI with profit booking seen at 7100 and below strike prices.
  • Nifty Open Interest is at 1,48,15,100 up by 2,67,200, with increase in price, most probably long build-up.
  • Bank Nifty Open Interest is at 21,68,600 down by 1,28,300, with no change in price, most probably huge short covering.
  • FII’s bought huge 6.82 lacs Futures, which includes 6553 long addition and 7083 short covering, with increase in net OI by 13636 contracts (includes 61531 longs to 47895 shorts for the day) and the average price per contract comes to around 7655.85.
  • FII’s Index future open contract as on date is 194220 Longs to 149854 Shorts.
  • PCR Open Interest (Volume) is at 0.911.
  • Initial support now at 7600, with huge OI addition for the day at 9.69 lacs and below that at 7500 with huge OI of 66.81 lacs.
  • Initial resistance at 7700, with huge OI of 54.47 lacs and above that at 7800 with OI of 49.22 lacs.
  • Day Range as per Option Table is 7561 - 7711 and as per VIX is 7581 - 7700 with 7636 as the Pivot.
Option Call for 18-07-2014
Buy Nifty 7600CE above 112 for targets of 124, 137 SL - 105
Buy Nifty 7700PE above 102 for targets of 116, 134 SL - 95

India VIX : 14.97 up by 0.24 points
Call OI : 43983450
Put OI : 40082500
PCR OI : 0.911
SMR : 16.43 (Bullish: A perfect consolidation after 2 days of huge up-move with the PE writers adding huge at 7700-7400 level, though huge resistance still exists at 7700, range bound moves could be the order of the day...)